Survey of Transportation Payments for Personal Property Shipments Under Foreign Military Sales Service Agreements

A survey of transportation payments for personal property shipments under Foreign Military Sales Service Agreements revealed that Iran was underbilled about $1.6 million by the Army and about $300,000 by the Air Force for personal property shipments during fiscal year (FY) 1975. Army officials advised that because of the lack of specific names and Foreign Military Sales Case designators they were unable to verify the findings and have taken no action. The Air Force reviewed the findings and advised that action would be taken to bill Iran, but as of May 15, 1978, billing had not taken place. The problem of underbillings noted in FY 1975 has apparently been corrected in subsequent years by an increase in the standard billing rates which became effective in FY 1976.